Customising the accounts hierarchy when beginning

[Mike or Penny Novack]

PS ---- You MIGHT be creating a set of books for an entity that starts 
out with zero equity. That might seem strange so I will give an example 
later. In that case your opening balance transaction(s) would likely 
affect just asset and liability.

Example: My solar system. I want to know how this is working AS IF AN 
OUTSIDE INVESTMENT. In other words, pretending that it was LOANED the 
capital to pay for the system. Then had income items like the amount 
credited to production (off my personal electric bill), sale of SRECs, 
and tax credits but expense items like "percentage of insurance 
attributed", estimated income tax on sale of SRECs, depreciation of 
system, interest payments (at the assumed rate -- and BTW, that's tax 
free income as this is a simulation, not a real outside investment). 
Since no real bank account, the current asset is "unallocated cash" and 
from here, whatever left over from expenses can be used to pay back loan 
principle.

       Of course as time goes by, the equity will build up if the system 
produces more income than expenses.


Michael D Novack